The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1887-04-13
DEAL OFF AND A LAWSUIT ON
Ives 4 Stayner Threaten President Gar
rett with a Suit for 100000,
Whenever They Are Ready-The Quarrel
About Ticket C0mmssions-NOtes.
Special to the Indianapolis Journal.

Special to the Indianapolis Journal.
WASHINGTON, April 22.-Comes to me from
New York, through private channels tine state
ment that the Baltimore & Ohio railroad deal Is
off. and that an important lawsuit will, in all
probability, follow Ives and Stayner say they
will sue Mr.. Garrett to recover the $780, 600 they
put up as forfeit They were not able to
raise the purchase money, although they got
together several mill on dollars. Men whom
they expected to come into the deal backed out,
saying Mr.. Garrett asked too much for the prop
erty. Mr.. Garrett said that he had contract
for the sale of the road, and that the 100000
was an earnest OF the contract. and nothing
more nor less than q forfeit. Ives and Stayner
and their friends claim that the stock was not
worth what asked for it, and that having
declined to purchase solely on that ground, their
forfeit money must be returned to them. Mr..
Garrett refuses to surrender the forfeit, and
cells tnem to sue, if they wish to. 1t is believed
that the result will be an airing of the whole
transaction in court.
In this connection I am informed that the orig
inal parties to the B. e. o. sale. who are Rich
mond terminal people, including Brice. Sully,
Thomas, Moore. and that crowd, have partly
perfected An arrangement whereby the B. e. o.
and the Richmond Termina al will be confederated
under one management, making one of the
largest systems of roads In the West. Besides
B. & o. and Richmond Terminal, it will include
the Richmond & Danville, the East Tennessee,
the Memphis & Charleston, the Alabama & Chat
tanooga, the Georgia Central. the Florida &,
Northern, and several other roads from New
York to Chicago, and nearly ali roads, except
be G. -
south of Mason & Dixop's line Arrangements
are under rapid negotiations for this amalgama-
ton.
One of the Evils of the Railway Law.
ATLANTA, Ga, April 12--The Constitution
publishes long interview with Gen. E. p AL
exander, president of the Central railroad sys-
tenn, on the lnterstatecomrnerce act. General
Alexander says: "The great trouble is that the
law as it stands will not permit competition
Under the pool system the practical destruction
of competition was bad enough, but under this
law competition is destroyed by statute. The
pool was flexible affair, adjusting itself fully
and freely to the demands of the trade, to the
complications of commerce ard to the necessities
and interests of business com munities, but the
interstate law is infexible provided it be put in
operation. 1t is a law that may fit the North
and East, but its effects will be very seriously
felt in the South wherever its provisions are
carried out. Until the passage of the Interstate
commerce act there was no restraint upon
free competition among carriers. No pen
atty was attached to It, and it became a univer-
sal custom wherever two lines came in
contact This gave advantage to such points
not possessed by others, and business conferred
at them, manufactures sprailg up, and property
increased in value around tn EN-. Places which
were non competitive taxed themselves and
raised money 6y various devices to secure COM
peting lines. Many of them have, perhaps paid
much more than the advantages were WORTH 1t
seems at first 81 2ht not very serious thing to
do, but think upon examin alton and reflection
it will appear to have very farreaching effects.
The values of property over the whole Southern
territory have crystallized under conditions
which will be materially chan red if penalties are
TO be attached to competition. The situation will
not be unlike what would res nit in a manufact-
turing district which had or own up for forty
years under protective tariff. if the tariff was
suddenly removed. Values would be all unset.
tied and would have to reatiJust themselves to
the altered conditions This is always slow
process and one entailing great hardships upon
individuals"